Report Projects Biden’s New Student Loan Plan Will Cost Billions

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

( – On Monday, July 17, the University of Pennsylvania’s Penn Wharton Budget Model revealed that President Biden’s new version of the student loan forgiveness plan could cost up to $475 billion over the next decade for U.S. taxpayers.

Following the Supreme Court’s decision to strike down Biden’s previous plan, Biden revealed a new updated version dubbed SAVE. The group that made the analysis estimates that the cost of around $200 billion would be the result of the payments being reduced for a total of $1.64 trillion in debt. They estimated that under SAVE, just over half of the loan volume in 2023 is going to remain the same in July 2024. This means that around $869 billion could receive the enhanced subsidies under the plan.

The group added that the other $275 billion is the estimated amount that will go toward reduced payments for around $1.03 trillion in new student loans, as the program is expected to last for the next decade. According to these new estimates, the cost of SAVE could be billions of dollars more expensive than the previously rejected student loan plan.

On Friday, July 14, the White House released a statement from Biden, who briefly outlined the new plan while slamming the Supreme Court and Republicans for working against his goals for student loan relief. He promised that while he is president, he plans to keep pushing to “bring the promise of college to every American.”

The new SAVE plan has an income-driven loan repayment plan, where borrowers will be allowed to change their monthly loan payments in order to best fit their family size and income level.

Copyright 2023,